Answer:
Break-even point (dollars)= $574,000
Explanation:
Giving the following information:
Selling price per unit $ 200.00
Variable expense per unit $ 58.00
Fixed expense per month $ 407,540
<u>To calculate the break-even point in dollars, we need to use the following formula:</u>
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 407,540 / [(200 - 58)/200]
Break-even point (dollars)= $574,000
Answer:
Bradford's estimated variable manufacturing overhead cost is $127,200
Explanation:
The cost function=$83,000+$12M
where M stands for machine hours required to produce the expected output in the month under review.
Each one-six unit case of Bradford's single product requires two machine hours,hence 5,300 cases would require 10,600 hours(5,300*2hrs).
Total estimated variable manufacturing overhead=cost per machine hour*expected number of machine hours
cost per machine hour is $12 as seen in the cost function
estimated variable manufacturing overhead=$12*10,600=$127,200
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Answer: B. redeploying and recombining existing core competencies to compete in future
Explanation: Motor craft inc core competence is in fuel efficient engine but realizing that there is a new market opportunity to diversify, it then "redeployed and recombined existing core competencies to compete in future". By producing car engines in large scale and selling it to other automobile companies.
